Equity Linked Investment

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Equity Linked Investment

 

Equity Linked Investment (ELI) is an unlisted structured investment product embedded with derivatives, customer may have the opportunity to earn potential returns or buy the linked stock at a pre-defined price according to the performance of linked stock.

Depending on your financial need, you can develop your own personalized investment portfolio and earn potential investment returns by selecting single or a basket of underlying stocks, flexible investment tenor, strike price and airbag price, etc.

 

Key features:

  • Flexible investment tenor
    Investment tenor usually ranges from 2 months to 11 months.

  • Callable feature
    ELI with callable feature allows investors to receive potential return and their invested amount before the maturity date.

  • A wide variety of underlying stock
    More than 100 eligible Hong Kong listed stocks or exchange-traded funds can be linked, investors may also choose to link to a single stock or a basket of stocks.

  • Various currency choices
    Multiple currencies such as HKD, RMB or USD can be selected as the investment principal.

  • Airbag mechanism
    Some ELI products include an airbag mechanism, in which case the settlement arrangement at maturity will depend on whether the airbag mechanism is triggered.

    The airbag level is usually expressed as a percentage of the linked stock’s initial spot price, and is usually set lower than its strike price.

 

Important Notice

  • Equity Linked Investment (ELI) is a complex product. You should exercise caution in relation to the ELIs.
  • ELI has been authorized by the Securities and Futures Commission of Hong Kong (“SFC”). However, the SFC’s authorization does not imply its endorsement or recommendation of this Product referred to in the Offering Documents nor does it imply that SFC guarantees the commercial merits of this Product or its performance.

 

Risk Disclosure Statement

  • The above content is for reference only. It does not constitute any offer, solicitation or recommendation to the purchase or sale of any investment products or provision of investment services. The investment decision is yours but you should not invest in the product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
  • Equity Linked Investments (ELIs) are not equivalent to time deposits and are not principal protected. They are unlisted structured investment products embedded with derivatives.
  • ELIs are not listed on any stock exchange.
  • ELIs are not secured on any of issuer’s assets or any collateral. ELIs constitute general, unsecured and unsubordinated contractual obligations of issuer and of no other person. When you buy the ELIs, you will be relying on the issuer’s creditworthiness. If the issuer becomes insolvent or default on the issuer’s obligation under the ELIs, in the worst case scenario, you could lose all of your investment.
  • Buying ELIs is not the same as buying the reference stocks. You have no rights in the reference stocks during the investment period (except where the reference stocks is determined to be deliverable to you on the settlement date, you will be entitled to the rights in such reference stocks as from the expiry date).
  • ELIs are designed to be held until expiry. Issuers will only provide limited market making arrangement for their ELIs. If you sell your investment in ELIs before expiry, you may receive an amount which may be substantially less than your original investment amount. Some ELIs may contain an autocall feature/condition. If the autocall feature is triggered/autocall condition is satisfied, the ELIs will be terminated before the expiry date. You will bear re-investment risk that the prevailing market conditions may have changed and may hinder you from making any further investment under similar terms.
  • Regarding the product details and risk disclosure of relevant ELIs, please refer to relevant offering documents. You should not invest in the ELIs based on this promotional material alone. Investors should consider their own investment objective, financial position, risk tolerance level and other relevant circumstances, and read the relevant offering documents and risk disclosure statement before making any investment decision. If you have any questions, you should obtain independent professional advice before making any investment decision. Please note that the risk factors mentioned above are not, and do not purport to be, exhaustive.
  • The fluctuation in the exchange rate of foreign currencies may result in gains or losses in the case where the customer converts foreign currencies to HK dollars or HK dollars to foreign currencies. If the investment is denominated in a foreign currency or invest in assets denominated in a currency other than the base currency, you may face an exchange rate risk or exchange controls or any other restrictions which the return or amount you receive after redemption may be reduced. You should therefore carefully consider whether such item is suitable in light of your financial position and investment objective. RMB is not freely convertible and currency exchange of RMB through banks in Hong Kong is subject to the rules, regulations and guidelines from the relevant regulatory authorities or relevant entities in China and/or Hong Kong from time to time.
  • This page is issued by Chong Hing Bank Limited. It has not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authorities.